Amplify Energy Corp. Leases Disclosure
Note 13. Leases
The Company enters into leases for office space, warehouse space and equipment in our corporate office and operating regions as well as vehicles, compressors and surface rentals related to our business operations. In addition, the Company has right-of-way leases to operate the San Pedro Bay Pipeline. For the year ended December 31, 2025, the Company leases qualify as operating leases and the Company did not have any existing or new leases qualifying as financing leases. Most of the Company’s leases, other than the Company’s corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of our leases can be terminated with 30-day prior written notice. The majority of our month-to-month leases are not included as a lease liability in the Company’s balance sheet because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less.
The Company corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, the Company uses an incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, the Company applied a portfolio approach based on the applicable lease terms and the current economic environment. The Company uses a reasonable market interest rate for the Company office equipment and vehicle leases.
For the year ended December 31, 2025 and 2024, the Company recognized approximately $2.1 million and $2.0 million, respectively, of costs relating to the operating leases in the Consolidated Statements of Operations.
Supplemental cash flow information related to the Company’s lease liabilities in included in the table below:
| For the Year Ended | |||||
| December 31, | |||||
| 2025 |
| 2024 | |||
| (In thousands) | |||||
Non-cash amounts included in the measurement of lease liabilities: |
|
|
|
|
| |
Operating cash flows from operating leases |
| $ | 1,542 |
| $ | 1,216 |
The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:
| December 31, | December 31, | ||||
2025 | 2024 | |||||
(In thousands) | ||||||
Right-of-use asset | $ | 2,998 | $ | 4,540 | ||
Lease liabilities: |
| |
| | ||
Current lease liability |
| 1,184 |
| 1,784 | ||
Long-term lease liability |
| 2,568 |
| 3,683 | ||
Total lease liability | $ | 3,752 | $ | 5,467 | ||
The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):
Office and | Leased vehicles | ||||||||
warehouse | and office | ||||||||
| leases | | equipment | | Total | ||||
2026 | $ | 1,223 | $ | 214 | $ | 1,437 | |||
2027 | 847 | 194 | 1,041 | ||||||
2028 | 728 | 12 | 740 | ||||||
2029 | 728 | — | 728 | ||||||
2030 and thereafter |
| 364 |
| — |
| 364 | |||
Total lease payments |
| 3,890 |
| 420 |
| 4,310 | |||
Less: interest |
| 523 |
| 35 |
| 558 | |||
Present value of lease liabilities | $ | 3,367 | $ | 385 | $ | 3,752 | |||
The weighted average remaining lease terms and discount rate for all of the Company’s operating leases for the period presented:
| December 31, |
| |||
2025 | 2024 |
| |||
Weighted average remaining lease term (years): | | |
| ||
Office and warehouse space |
| 3.50 |
| 3.71 | |
Vehicles |
| 0.23 |
| 0.26 | |
Office equipment |
|
| |||
Weighted average discount rate: |
|
|
| ||
Office and warehouse space |
| 6.20 | % | 5.43 | % |
Vehicles |
| 0.84 | % | 1.31 | % |
Office equipment |
| — | % | 0.02 | % |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.